featuTHE Philippine Competition Commission (PCC) has cleared JERA Asia Private Ltd.’s pending share sale with listed power firm Aboitiz Power Corp.
“On October 28, 2021, the Company was advised that the PCC issued an acknowledgement…that based on the PCC’s evaluation of the documents and information submitted by the parties, the proposed acquisition by JERA Asia of 27% equity interest in AboitizPower does not breach the prescribed compulsory notification thresholds under the Philippine Competition Act and its Implementing Rules and Regulations,” Aboitiz Equity Ventures, Inc. (AEV) said in a disclosure on Friday.
AEV is the parent firm of AboitizPower.
The commission also said the transaction is not “mandatorily notifiable.”
Parties in an acquisition or merger must notify the PCC for transactions exceeding P1 billion and cannot execute the agreement until 30 days have lapsed, according to The Philippine Competition Act.
Last month, AEV announced its plan to sell 27% of its stake in AboitizPower.
Upon the sale’s completion, AEV will own a controlling stake of 52% in the listed power firm.
JERA Asia is a wholly owned unit of Japan-based power generation firm JERA Co.
Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz has said the transaction unlocks significant capital, which will be used to fund the group’s growth initiatives.
AEV previously said AboitizPower is open to collaborating with JERA Asia in developing liquified natural gas projects and exploring the use of new power generation technologies, among others.
AEV shares improved by 0.41% or 20 centavos to finish at P48.40 apiece on Friday. Meanwhile, AboitizPower shares inched up 0.16% or five centavos to close at P32.15 each. — A.Y. Yang